AGP Executive Report

Manufacturing Pulse: Czech manufacturing PMI rose to 54.1 in August, the highest since April 2022, with output and new orders expanding and hiring picking up, though supplier delays and logistics frictions still weigh on vendor performance. Urban Mobility: Prague has started building the new 1.9-km Olšanská–Habrová tram link, with six stops, CZK 599.2m in costs and an end-of-August-2027 target, including track works and greenery plans. City Planning: Prague’s new Metropolitan Plan has come into force, aiming to steer long-term growth toward housing and better use of brownfields and rail-connected areas while protecting green space and heritage. Aviation & Drones: Dronetag and Airwise Solutions are integrating Remote ID detections into Airwise Nexus to give operators a shared operational picture for safer, scalable low-altitude and BVLOS missions. EU Politics for Industry: At Bled, Czech PM Andrej Babiš pushed for Central European “coalitions” to defend competitiveness, cohesion funding and energy security in the next EU budget talks. Tech & Business Travel: STARLUX’s gold A350-1000 has arrived in Prague for the first time, boosting capacity on the Prague–Taipei route. Regional Security: Poland’s FM Sikorski said Russia’s war impacts security beyond Europe, urging closer Central Europe-Japan cooperation in autos, infrastructure, energy, science and advanced tech.

EU Reform Push: Central European leaders, including Czech PM Andrej Babiš, argue at the Bled Strategic Forum that the region now has enough weight to shape EU direction, not just receive funds. Aviation & Tourism: STARLUX’s golden A350-1000 made its first landing in Prague on Sept 1, boosting the Taipei route’s capacity and marking a step in the airline’s Czech expansion. Energy Infrastructure: ČEZ and Litostroj Engineering started model tests for a reversible Francis turbine upgrade at Orlík, a major Czech hydro project aimed at pumping and storing surplus power. AI Compute in Europe: EuroHPC signed a €387.8m contract with Bull for LUMI-AI in Finland, positioning AMD-based compute as a sovereign alternative for Europe’s AI factory. Semiconductor Supply Chain: TRUMPF showcased new laser-based processes for producing integrated cooling and glass substrate structures for next-gen AI chips. Defense & Security: Poland opened a terrorism probe into a suspected sabotage fire at a drone-parts factory supplying military customers. Local Industry & Logistics Tech: Dronetag and Airwise Solutions announced a partnership to integrate Remote ID detection into Airwise’s drone operations platform. Sports Business: The Czech FA named Adidas as the new kit maker for the Czech national teams, replacing Puma after 33 years.

Supercomputing & AI Infrastructure: EuroHPC has signed a €387.8m deal with Bull to deliver the LUMI-AI supercomputer to CSC in Kajaani, Finland, using AMD Instinct MI430X GPUs and 6th-gen EPYC 256-core processors; it’s set to go live in the second half of 2027 and is meant to boost Europe’s AI capacity about tenfold while nearly doubling HPC power. Czech Business in Energy Software: Energy Exemplar is buying Prague-based SIMONE Research Group (and Germany’s LIWACOM), strengthening gas network simulation and optimization capabilities for TSOs and DSOs. Defense Industrial Policy: Reuters reports Poland is sharply shifting defense procurement toward domestic and Central European production, with spending on domestic firms up nearly fourfold since 2022 to 30.4bn zlotys last year. Prague Waste & Circular Economy: Prague plans two new municipal recycling centres in Zbraslav and Řepy to cut disposal distances and meet rising demand. Construction & Retrofit: Přerov City Hall is being reconstructed by atelier gram, reworking a 1969 modernist building into an open civic facility while upgrading energy and safety. Industrial Supply Chains (Aerospace/Defense Components): PEI-Genesis opened a new Pune plant to assemble Mil-Spec D38999 connectors, aiming for faster lead times across India and Asia-Pacific.

AI & Supercomputing: EuroHPC JU has signed a €387.8M deal with Bull to deliver LUMI-AI, a next-gen AI supercomputer for the CSC data centre in Kajaani, Finland, boosting AI capacity tenfold and HPC nearly twofold; it’s due for deployment in the second half of 2027 and will back industrial AI, research, training and large-scale simulations, with Czechia among the LUMI AI Factory consortium. Defense & Security: Czech defense firm FoxMarket will showcase Canadian Nanuk protective hard cases at Future Forces Prague, aiming to standardize transport for drones, counter-UAS and electro-optics with Czech-engineered foam interiors. EU Politics & Agriculture: Czech MEP Jana Nagyová has been found guilty of EU subsidy fraud in a €2M Agrofert-linked case; she received a suspended three-year sentence and plans to appeal to the Czech Supreme Court. Transport & Infrastructure (Prague): Prague has applied for a building permit for the Vltava Philharmonic, with construction targeted for 2028 and trial operations in 2033; meanwhile, Florenc’s Ke Štvanici street is reopening to traffic and pedestrians after a long renovation. Industry Watch (EV): Skoda’s Enyaq for 2026 gets upgraded safety and practicality features, plus the return of the RS flagship, with the model positioned as a key EV seller.

Industrial Additive Manufacturing: Reinforce3D and Czech AM solutions provider 3Dees signed an agreement to make CFIP structural reinforcement easier to adopt inside existing 3D-printing workflows, with 3Dees acting as sales partner across Central and Eastern Europe (Czechia, Slovakia, Poland, Ukraine). AI Supercomputing for Industry: Bull will deliver the €387.8m LUMI-AI supercomputer for Europe’s LUMI AI Factory, boosting AI capacity tenfold and HPC capability nearly doubling, with deployment planned for late 2027 and Czechia among participating countries. Czech Macro Watch: Czech GDP growth was revised to 1.9% y/y in Q2 (0.4% q/q), with consumption and investment supporting growth while inventories weighed; separate Supreme Audit Office coverage flags structural weaknesses, high energy intensity, low labour productivity and rising debt. Defence-Industry Security: Funeral wreaths and black-ribbon photos appeared near defence firms in Lithuania and the Czech Republic, prompting investigations and suspicions of Russian-linked intimidation. Transport & Rail Modernisation: Škoda is pushing into Romania with battery-powered trains, “smart depots” and automated tram maintenance concepts, aiming for long-term industrial presence rather than one-off deliveries. Energy & Water Stress: Europe’s drought is hitting fish and farms, with Czechia among affected countries as heat and low water levels damage ecosystems and supply chains.

COVID Procurement Waste: Czechia spent about CZK 19bn on COVID-19 vaccines since 2020, but used under half of the 41m doses; roughly 18m doses expired and were destroyed (about CZK 8bn), with another 4m donated. Energy Security Watch: Germany may miss its 1 Nov gas-storage target, with storage at 51.5% on 25 Aug versus 69% a year earlier, raising concerns for industrial consumers if cold weather and import disruptions hit together. Drought Hits Food & Water: Extreme heat and drought are damaging Europe’s fishing sector, with fish farms and river ecosystems suffering losses “in the millions of euros,” including in the Czech Republic. Industrial Logistics & Automation: Vibracoustic is rolling out AGV-based intralogistics with a manufacturer-independent control layer, aiming to integrate transport systems into SAP/Azure and scale plant operations. Czech Competition Policy: O2 Czech Republic faces fines over a cartel agreement, with authorities imposing penalties exceeding CZK 280m. Defense Supply Chains: Roshel says it has delivered over 2,500 Senator armored vehicles to Ukraine and is expanding cooperation via a production facility in Ukraine.

Drought hits Czech food supply chains: Extreme heat and low water levels are damaging rivers, lakes and farms across Central Europe, with Czech agriculture and fish farming among those feeling the squeeze as businesses weigh how to adapt to more frequent climate shocks. EV charging expansion in Czechia: Anari Energy says its Vulco DC fast-charging stations are now operational in the Czech Republic and other countries, pushing further into Eastern Europe with high-power, cold-ready hardware. Prague transport works: Tram construction in Prague 3 is forcing diversions from Saturday, a reminder that urban infrastructure projects keep reshaping local logistics and commuting. Energy security pressure in Europe: Germany is at risk of missing its gas storage target, raising stakes for industrial planning ahead of winter. Czech economy snapshot: Czechia’s economy grew by 1.9% in Q2, offering a modest counterpoint to the weather and energy headwinds. Defense industry links: Czechia is named among allies supporting vehicle deliveries for Ukraine’s mobility needs, underlining ongoing cross-border defense cooperation.

EV Market Watch: Europe’s BEV momentum keeps climbing, with July registrations up sharply and BEVs reaching about a quarter of the market share, driven by cheaper models and new supply. Czech Industry & Mobility: Škoda is pushing a driver-focused sedan lineup for 2026, while Prague continues tram expansion and data-centre construction plans. Energy & Infrastructure: Drought and heat are hitting European water and farming, and Germany’s gas storage refill pace is raising winter supply concerns—an issue that matters for Czech energy planning too. EV Charging Expansion: Anari Energy says its fast-charging hardware is now operating in the Czech Republic and other countries, marking further international rollout milestones. Security & Tech: Czech-related reporting flags ongoing Russian cyber and sabotage threats, alongside broader moves to disrupt extremist digital infrastructure. Local Economy & Policy: Czechia is set to push for EU healthcare funding in the next budget, as economic growth figures continue to shape expectations.

EU Budget & Healthcare: Czech PM Andrej Babiš says Prague will push to keep EU funding for healthcare after 2027, warning hospitals still face major investment needs and some EU-bought equipment is nearing end of life. Czech Economy: The Czech Statistical Office reports GDP up 1.9% year on year in Q2 2026, driven by household consumption and investment, with industry (+0.9% quarter-on-quarter) doing well. Prague Infrastructure: Skanska is set to build a new data centre outside Prague, adding to a busy Czech construction pipeline. Cybersecurity & Industry Risk: A ransomware group called TITAN claims it can use AI to sift 700GB of stolen data per hour; analysts urge caution since key claims weren’t independently verified. Standards for Wireless: 3GPP’s final pre-freeze week is underway, with Prague engineers working on core network and service aspects that will shape 5G-Advanced and 6G products. Climate Pressure on Czech Farming: Drought is forcing Czech farmers to cut cattle herds as feed crop shortages bite.

EU Budget for Healthcare: Czech PM Andrej Babiš says Prague will push to keep EU healthcare funding eligible after 2027, warning hospitals still face major investment needs and some EU-funded equipment is nearing end-of-life. Prague Transport Disruption: Prague Public Transit (DPP) starts track works for the new Olšanská–Habrová tram line and renovates the Spojovací turning loop, suspending trams on key sections from 29 August to 10 October with diversions for lines 9, 26, 95 and temporary routing changes for line 5. Czech Economy Watch: The Czech Statistical Office reports GDP up 0.4% quarter-on-quarter and 1.9% year-on-year in Q2, led by household consumption and investment, with industry (+0.9%) among the strongest sectors. Cybersecurity Risk: A ransomware-as-a-service group called TITAN claims AI can process 700GB of stolen data per hour; analysts urge caution since the AI claims haven’t been independently verified, but Czech victims are listed among the affected. Defence Electronics Expansion: Kitron adds 7,500m² of high-reliability electronics capacity near Arendal in Norway, boosting defence and aerospace output as the group raises 2026 revenue guidance to €1.05–1.15bn. Standards & 6G: 3GPP’s Prague meeting feeds into the Rel-20 Stage-2 freeze, with Prague-based work on 6G APIs and conformance test governance shaping what devices can be certified next.

Prague Transport Disruption: Prague Public Transit will suspend tram services in Prague 3 from Saturday, 29 August to 10 October 2026 for the Olšanská–Habrová line works and the renovation of the Spojovací turning loop, with lines 9, 26 and 95 diverted and line 34 fully suspended. Czech Industry & Defence Electronics: Kitron expands its Longum plant near Arendal by 7,500 m², adding Norwegian capacity for high-reliability electronics as Defence and Aerospace becomes its biggest market sector; the group lifted its 2026 revenue outlook to €1.05–1.15bn. Data Centres in Prague: Skanska won a CZK 2.1bn contract to build Prague Gateway DC’s main construction and non-IT technology package, targeting high-density AI workloads with a secured 26MW power supply. Counter-Drone Startup Funding: Mara raised $7m pre-seed to scale its Spike counter-UAS system, moving from field testing toward initial deployment by end-2026. EU Finance for Energy Autonomy: The EIB approved €9.2bn in new financing, including €4.3bn routed via local banks for SMEs in the Czech Republic and other countries, with support for defence, space, energy and agriculture. Czech Security Logistics: Bulgaria will join NATO’s Multinational Logistics Coordination Centre memorandum, aiming to strengthen logistics training and interoperability. Czech Drug Policy Shake-up: Experts warn that the government dismantled the long-standing drug policy coordination office, risking a collapse of the country’s previously respected addiction and drug strategy.

Hybrid Cargo Aviation: Czech startup Zuri unveiled its first commercial uncrewed cargo VTOL, a hybrid-electric tiltrotor that uses liquid fuel for range—115 kg over 679 km without runway—after years of Prague flight testing and a shift away from battery-only eVTOL bets. Public Transport Procurement: Brandenburg’s shared tender model paid off as it doubled its Škoda tram order, exercising options for four more ForCity Plus 48T low-floor trams to complete its tranche. Drug Policy Shake-up: Czech addiction and drug experts warn that dismantling the long-standing drug-policy coordination office could unravel a 20-year system that kept HIV among injecting drug users relatively low. Counter-Drone Funding: Mara raised $7m pre-seed to scale its Spike system combining multisensor detection with kinetic interceptors for FPV-drone defence. Logistics for Defence: Czech government approved joining a multinational logistics coordination centre memorandum, expanding NATO-linked training and multinational logistics support with Bulgaria joining. Drought Hits Feed Supply: Reuters reports Czech farmers facing hay shortages and soaring prices, with some cutting cattle herds as drought and feed crop damage bite. Postal Security Upgrade: Ukrposhta is creating an aviation security unit to screen hazardous items in mail flows, using AI risk profiling and new X-ray inspection at hubs. EU Defence Budget Push: European Council chief Antonio Costa urged higher EU investment in defence and security after talks with Czech PM Andrej Babiš ahead of the 2028–2034 budget negotiations.

Prague Infrastructure & Heritage: Prague’s Invalidovna complex is set for a comprehensive three-year renovation, with CZK 2.15bn earmarked for restoration, new buildings and garden redesign; work is due to finish by 2029 and the site should reopen in 2030, run by the NPÚ with consortium Metrostav CZ, AVERS and Chládek & Tintěra. Czech Competition Watch: Czech regulators imposed a record CZK 280.7m antitrust fine on O2 Czech Republic and SHERLOG Technology over a decade-long fleet-software cartel hidden inside a “partnership” arrangement. AI & Outsourcing for Industry: A new study on CEE outsourcing readiness for the AI era puts Czechia 7th overall and highlights strong AI education and adoption scores across the region, pointing to a growing talent pipeline for services tied to industrial tech. Energy & Climate Pressure on Czech Agriculture: The EU’s JRC warns heat and drought are hitting summer crops and fodder across western and central Europe, explicitly including Czechia; separately, Czech hop growers forecast nearly a 25% yield drop due to prolonged drought and limited irrigation. Tech for Cleaner Industry: Czech researchers report magnetic microrobots that can remove up to 94% of microplastics from water in lab tests, aiming at active capture even in soil-like environments. Global Business Ties: Daewoo E&C is pushing further into Vietnam’s energy projects, including nuclear and LNG, citing its Dukovany role and plans to localize work with Vietnamese partners.

EU Budget Talks: European Council President António Costa is touring EU capitals to lock positions for the next long-term budget, with a stop in Prague on Aug. 27 to meet Czech PM Andrej Babiš, and a focus on competitiveness, industrial transformation, defense and resilience. Drought Hits Czech Farming: A Reuters report says exceptional summer drought is cutting Czech grain and feed crops, emptying water sources and pushing hay prices sharply higher, with some farmers forced to reduce herds. Hop Harvest Down: Czech hop growers forecast almost a 25% drop in yields versus the long-term average due to drought and heat, with lower alpha-acid content expected; only about a quarter of plantations have irrigation. Security Shift Online: The Czech Interior Ministry’s 2025 annual report warns that extremist risk is moving from traditional groups to harder-to-detect online radicalization among minors and decentralized communities. Defense Supply Chain: Sikorsky selected Czech ČLS as its first authorized Black Hawk parts distribution hub in the EU to shorten spare-part delivery for the growing fleet. Competition Case: Czech competition authorities fined SHERLOG and O2 over a cartel on vehicle monitoring and electronic logbook services, including customer allocation and coordinated procurement bids. Cyber Disclosure: AISLE expanded its role as an EU CVE numbering authority under ENISA, enabling faster CVE assignment for eligible third-party vulnerabilities as AI accelerates discovery. Agriculture Risk Across Europe: An EU JRC bulletin flags heat and low rainfall across western and central Europe, with impacts including Czechia’s crops and fodder supply.

Drone Security in Slovakia: Slovak police say they thwarted a planned arson attack on Ukrainian drone maker Skyeton’s facility, seizing incendiary materials and tools; investigators link the plot to a wider pattern of attacks on defence-linked production. EU Budget Negotiations: EU Council chief António Costa kicks off his “tour des capitales” in Bratislava with PM Robert Fico, pushing for agreement on the 2028–2034 long-term budget while Fico demands protection for cohesion and farm funding. Czech Agriculture Under Heat Stress: EU forecasts warn drought and extreme heat have cut summer harvest expectations by up to 14% below the five-year average, with the Czech Republic among the hardest-hit areas affecting crops and fodder. Construction & Data Infrastructure: Skanska is set to build a $1bn data centre on Prague’s outskirts, with work starting now and completion targeted for 2028. Retail Tech Advantage: A new analysis argues European retailers are using advanced supply-chain technology to turn cross-border complexity into a competitive edge, not just a cost. Prague Housing Pressure: Airbnb listings in Prague remain a small share overall (about 1.1%), but are heavily concentrated in central districts, underscoring the city’s wider housing shortage. Corporate Leadership Change: Electromed announced CEO Jim Cunniff plans to retire around April 2, 2027, as the company reports strong 2026 revenue and profit growth.

EU Budget Talks: European Council President António Costa kicks off a capital-by-capital push ahead of hard negotiations on the 2028–34 EU budget, with defence, competitiveness, enlargement and Ukraine funding at the centre—and Czech Prime Minister Andrej Babiš among the early stops. Agriculture Under Pressure: The EU Commission warns that prolonged heat and drought are hitting summer crops and fodder across western and central Europe, with the strongest impacts including Czechia; the CAP is flagged for resilience via irrigation and water-saving investments. Prague Housing & Tourism: Analysis finds Airbnb listings in Prague are only about 1.1% of the city’s housing stock overall, but heavily concentrated in Prague 1, where they reach roughly one-fifth. Construction & Industry: Skanska signs a US$1bn contract to build a data centre on the outskirts of Prague, targeting completion in 2028. Cyber Reporting: A Czech cyber authority urges journalists to avoid publishing unverified cybercrime claims or unresolved vulnerabilities that could help criminals. Logistics & Trade: Port of Rijeka reports the first major shipment of Chinese cars, pointing to growing automotive logistics links in the region.